credit problems

[dash8driver]

how does being rejected after an interview affect your credit score?

 

[dingo222]

I'll stick to American Express Travelers Checks and Visa gift cards. That way i can pay in cash and still screw myself by using credit........awesome

 

[huncowboy]

Ok, first of all when you go to get a loan. Let's say you are going to get a home mortgage for $200K and you have never ever had a loan in the past.

The loan officer is going to want to see a few things. First of all they are going to want to see a current pay stub and a W-2. If you make enough money and if you have no debt ratio they will approve you for the loan at a competitive interest rate. If they do not then I suggest that you go and take your business elsewhere. (There are plenty of people and businesses out there that will trip over themselves to loan you money.) They will run your credit report to see if you have any thing that would preclude them from assuming you as a credit risk. However, since you have the amount of income to pay for the home and you have no other debts you will get the loan and at a good rate.

Again, if you would only read. Crizz is talking about how to get a loan if you have not established credit. You will not get an 800ish score if you don't have at least 5 active accounts that are in good standing over 60 months and your balance is not more than 40%. Your W-2 determines the size of the maximum loan, your score and credit history affects your percentage.

Read this:
[url="http://www.bankrate.com/brm/news/credit-scoring/20031104a2.asp"]http://www.bankrate.com/brm/news/credit-scoring/20031104a2.asp[/url]

When I first went to a car dealer with a blank credit report they threw me out and I made way more than what I am making now. My score did not show up. That means they don’t deal with you. I first had to start with a $500 max limit card and use it. Took me 5 years to build up my credit to above 700 and will take me another 5 and a mortgage line to get to 800.

Having said that, you may get a mortgage without much credit history as long the property is worth over the loan but only because of the strong collateral. I can’t think of any other type of loan that has similar security in case of default. You would have never received 5.6% fixed w/o some credit history. Not necessarily credit cards, but your mentioned car payments or any other type of loan accounts helped you getting that rate. Without those you would pay more!

Fact is, credit cards are one very accessible way to start building credit, perhaps too accessible. If you can't control yourself you will lose more than you could gain by spending over your abilities. This is where most screw it. But just going at someone at a forum and say that he/she needs more credit line only to borrow more... You got to be an idiot. Having a higher line of credit works in your interest up to a point. Doesn't mean you have to spend it all especially not on things that won't have any practical return.

Still having the ability after 7000 hours TT to judge anyone’s credit and risk management abilities after only reading 2 posts from the person is priceless.

Alright I am out for a week...

 

[Dangerkitty]

Still having the ability after 7000 hours TT to judge anyone’s credit and risk management abilities after only reading 2 posts from the person is priceless.

I am not going to argue with the credit/debt stuff because its obvious that you just dont get it. It's is too far over your head.

However, I would like to address the statment you made above.

What the F are you talking about? What does flight time have to do with the topic at hand?

 

[BoilerUP]

Well I don't know much of all this talk of credit and what not...but I do have a story along these lines.

My parents own three houses, a farm, and three new vehicles. They got all their loans through their bank, with nary a missed payment in at least 10 years. My dad tried to co-sign for a loan on a Honda ATV a friend was buying AND GOT DENIED due to lack of credit history. My parents got into deep CC debt when they first married, and since they've gotten back on their feet they have not had any credit cards. When he insisted on completing the transaction for the ATV and the snotty sales associate asked how he intended to pay for it, my father said "Cash, you do take cash, don't you?"

All this being said, my brother who is 19 got approved for a 100K mortgage based on the fact he had a bit over 10K in savings and a job making 30Kish a year. He has *zero* credit, and if anything, a bounced check or two within the last couple years. The loan would be through the same local bank our parents use, but without anybody as a co-signer.

 

[Traumahawk]

You guys are so clueless about debt you dont even know you are clueless. But hey what do I know I am only a financial counsler in addition to being a pilot.

He's also a civil rights historian and a political analyst last I recall...

 

[Dangerkitty]

He's also a civil rights historian and a political analyst last I recall...

Once again you recalled wrong. I never said anything of the sort.

 

[Traumahawk]

I am a Scholar of the Civil War....

OH, I forgot to mention he's also a test pilot...

To some poor shmoe that dared to cross him--

Considering I have more experience than you ten times over you might wanna take a back seat to that as well. Call me when you get a few thousand hours and we will then talk about experience. How about just getting a little jet time. OK, junior?

And now of course a Financial Analyst.

Perhaps if we get into the topic of Rocket Science or even Brain surgery, we may come upon yet another realm of superiority DangerKat resides in.

DangerousPu$$y and PFT_128 are the types around here that you just skim over. True Hypocrites and always ready to jump on a prospective argument.

T-Hawk

 

[Dangerkitty]

I was not going to answer to any of this beause it is so full of BS that it would be easier for me just to ignore it. However, since huncowboy has fallen for the banks and credit card companies hook, line, and sinker I might as well provide an alternative way to all this crap he keeps spouting.

Again, if you would only read. Crizz is talking about how to get a loan if you have not established credit. You will not get an 800ish score if you don't have at least 5 active accounts that are in good standing over 60 months and your balance is not more than 40%. Your W-2 determines the size of the maximum loan, your score and credit history affects your percentage.

I have read what Crizz has said. There are other ways to get loans without having to open up all these lines of credit so that you can "build" a better beacon score. Have you ever heard of the term "manual underwriting."
If you have ever had to pay rent then you have a credit history. If you have ever paid untilities you have a credit history.

Furthermore people in the business of loaning money are not going to turn people away just because they dont have a long estblished credit history. They make money by lending money for Pete's sake. Why woud they turn perfectly good clients away just becuase they dont have 10 different credit cards and 2 car payments?

When I first went to a car dealer with a blank credit report they threw me out and I made way more than what I am making now. My score did not show up. That means they don’t deal with you. I first had to start with a $500 max limit card and use it. Took me 5 years to build up my credit to above 700 and will take me another 5 and a mortgage line to get to 800.

Getting thrown out because you dont have a beacon score is a pretty lame excuse. If it was true then you dont wanna do business with them anyway. Who said you had to have financing from that dealer in the first place. They say no, so you just shrug your shoulders and walk out? Why not go to your bank or Credit Union and ask about financing? However, if you were trying to buy a new car the best favor in the world they could have done for you was refuse financing. A new car is the biggest rip off in the world but that is another story.

Having said that, you may get a mortgage without much credit history as long the property is worth over the loan but only because of the strong collateral. I can’t think of any other type of loan that has similar security in case of default. You would have never received 5.6% fixed w/o some credit history. Not necessarily credit cards, but your mentioned car payments or any other type of loan accounts helped you getting that rate. Without those you would pay more!

Once again you are so wrong it is laughable. I achieved a 5.6% fixed rate mortgage becuase I locked it in a the appropriate time. If your broker or bank only goes by the beacon score then you need to find a new broker or bank. Once again the term manual underwriting comes to mind. Banks and brokers are in the business of loaning money. In such a highly competitive business they will not turn good credit risks away. If they tell you they can't underwrite your because of your lack of credit history then they are full of $hit and you should go somewhere else. Many many mortgage companies will underwrite you without a beacon score.

Fact is, credit cards are one very accessible way to start building credit, perhaps too accessible. If you can't control yourself you will lose more than you could gain by spending over your abilities. This is where most screw it.

I agree 100%. So why even take the chance. Why not just pay in cash or use a debit card?

But just going at someone at a forum and say that he/she needs more credit line only to borrow more... You got to be an idiot.

Could you please repeat this sentence in English that I can understand?

Having a higher line of credit works in your interest up to a point. Doesn't mean you have to spend it all especially not on things that won't have any practical return.

Why dont you go back and reread that link you posted? A higher line of credit does NOT help you credit score. It hurts it. Doesn't matter if you have debt on it or not.

Still having the ability after 7000 hours TT to judge anyone’s credit and risk management abilities after only reading 2 posts from the person is priceless.

Once again could you please type in English that most of us could understand? I guess you are trying to make some sort of correlation with my flight time and the argument at hand but I am not sure.

Maybe you should have a few more cocktails this time before you post.

 

[Dangerkitty]

OH, I forgot to mention he's also a test pilot...

Where have I ever said that?

And now of course a Financial Analyst.

Where have I ever said that?

Perhaps if we get into the topic of Rocket Science or even Brain surgery, we may come upon yet another realm of superiority DangerKat resides in.

Nope, I have nothing to do with neither.

DangerousPu$$y and PFT_128 are the types around here that you just skim over. True Hypocrites and always ready to jump on a prospective argument.

T-Hawk

Cute little play on words you got there T-hawk. As usual you come on here and just fling insults becuase you got nothing else to contribute. No facts, no knowledge just pure ignorance. I would be curious though how you can define me as a hypocrite. You are so good at bringing up old quotes, why dont you show everyone here where I have been a hypocrite?

Time to get into that POS Junglejet you fly so that you can bring in your $19 an hour.